By Commodity News Service Canada
Winnipeg – April 4/13 – CNS – The Canadian dollar was
trading at a firmer level versus the US currency in late North
American activity on Thursday. Some of the strength displayed by
the Canadian dollar reflected news from Japanese officials that
they are going to try to help relieve some of the country’s
economic problems and avoid deflation, market watchers said.
The Canadian currency late in the afternoon was quoted at
C$1.0123 (98.78 US cents). This compares with Wednesday’s late
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The Canadian unit soared against the Japanese yen, rising
about 3.7% on the session to reach 95.22, its highest level since
Oct of 2008.
The Japanese central bank said it would increase its
quantitative easing program, with an action to buy twice as many
bonds as expected, prompting widespread selling of the yen.
The evening of positions ahead of Friday’s employment data
in Canada and the US also benefited the Canadian currency,
brokers said.
Pre-report ideas feel that Canada’s economy added 6,500 jobs
in March after a 50,700 increase in February.
Weakness in global crude oil restricted some of the upswing
in the Canadian dollar.
Canadian bonds ended higher along the yield curve on
Thursday after the Bank of Japan said it was ramping up its
program to buy bonds and the European Central Bank indicated
monetary policy in the euro zone will likely remain
accommodative, market watchers said.
Canada’s two-year bond yield was at 0.990% Thursday, from
0.995% Wednesday. The 10-year bond yielded 1.784%, from 1.831%.
Bond yields move inversely to bond prices.
In overnight trading, the Bank of Japan increased its
quantitative easing program, with an action to buy twice as many
bonds as expected.
The European Central Bank kept its key interest rate steady,
but ECB President Mario Draghi indicated monetary policy in the
euro zone is likely to remain stimulative.
END
